PRICING OF USD 650 MILLION 3.375% FIXED RATE SENIOR UNSECURED DOLLAR NOTES OF 5-YEAR TENOR
REC Limited has successfully raised USD 650 million (INR 4,450 crore), 5-year bond from REG S Bonds under the established Global Medium Term Programme of USD 5 billion. Proceeds of the bond will be used to finance power projects in accordance with the approvals granted by the RBI from time to time and in accordance with the ECB Guidelines.
The 5-year REG S Bond has a semi-annual coupon of 3.375% per annum and a maturity date of 25 July 2024. It offers investors a reoffer spread of 167.50 basis points over the 5-year UST. The transaction saw an oversubscription of more than four times with active participation from more than 140 major international investor accounts allowing it to price inside its current market levels with the tightest coupon ever on its five-year USD bond.
The Initial Price Guidance was 195 basis points over the five-year US Treasury.
REC decided to upsize the deal to USD 650mn from the earlier benchmark target to accommodate keen investor interest in the issuance from REC Limited. The final Order Book has been over $2.70 billion from over 140 accounts across the globe with Asia accounting for 63%, EMEA 37%
REC’s bonds opened for subscription on Thursday across global centres subsequent extensive road show in Asia and London. The transaction evidences strong demand and confidence from investors around the globe towards REC Limited’s differentiated credit despite the weaker emerging market headlines and some concerns on Indian NBFI sector
This demonstrates a very strong investor appetite for India sovereign-linked paper, at a very tight pricing. Barclays, DBS Bank Ltd., HSBC, MUFG and Standard Chartered Bank are the joint bookrunners for the issue.
About REC Limited:
REC Limited (formerly Rural Electrification Corporation Limited) is a Navratna NBFC and Infrastructure Finance Company (IFC) focusing on Power Sector Financing and Development across India. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities. Its business activities involve financing projects in the complete power sector value chain; different type of projects includes Generation, Transmission, Distribution Projects and Renewable Energy projects.
Established in 1969, REC Limited is celebrating its Golden Jubilee on 25th July, 2019.
Source: recccprco
